Peloton co-founders John Foley and Hisao Kushi are leaving the connected fitness company amid struggles to drive profits after a pandemic boom.
Foley, Peloton’s former CEO, has stepped down as executive chairman, while Kushi will resign as chief legal officer on Oct. 3. Peloton CCO Kevin Cornils announced that he will leave the company on Sept. 23 after working there since 2018.
- Shares of Peloton peaked at $167 in October 2020.
- Its stock was at $11.05 as of close Monday, down nearly 70% this year alone.
Last month, current CEO Barry McCarthy announced that Peloton is “making the hard choices,” leading to the elimination of 784 jobs, along with a major reduction of its brick-and-mortar locations and price increases for its most expensive products.
Peloton, which currently has 88 North American stores, will outsource delivery of its interactive products. It will also raise the price of the Bike+ by $500 (to $2,495), and that of the Tread by $800 (to $3,495).
The company, which went public in 2019, delayed its annual 10-K filing with the SEC in August to sort out details related to its ongoing restructuring.
Peloton generated $678.7 million in revenue in fiscal Q4 — down 28% year-over-year and missing Wall Street estimates of $718.2 million.
Revenue from its connected fitness products fell 55% year-over-year to $295.6 million.